atrk

Finance Broking Australia-regulatory guide 226

Select Industry
Regulatory Guide 226 - Guidance on ASIC market integrity rules for capital and related requirements: ASX and ASX 24 markets CPD

This guide is for participants on the ASX, ASX 24 and Chi-X markets. It gives guidance on ASIC market integrity rules for capital and related requirements for these three markets.

It also explains ASIC’s approach in developing these rules based on the previous capital and related requirements in the ASX and ASX 24 Operating Rules.

On 1 August 2010, ASIC took over general supervision of trading on Australia’s domestic licensed financial markets, which included making market integrity rules for the ASX and ASX 24 markets.

At that time, ASIC agreed with the ASX Group that it would continue to supervise capital, reporting and margin requirements for non-clearing market participants on the ASX and ASX 24 markets until 1 August 2011. From 1 August 2011, ASX and ASX 24 market participants must comply with ASIC market integrity rules for capital, reporting and margins. These rules are modelled on the previous requirements for capital, reporting and margins in the ASX and ASX 24 Operating Rules.

From the commencement of the Chi-X market, Chi-X market participants must comply with the ASIC market integrity rules for capital and reporting for the Chi-X market. These rules are modelled closely on the equivalent capital and reporting rules for the ASX market to ensure a level playing field for the two equity markets. Participants who are market participants on both the ASX and Chi-X markets can satisfy the capital rules of both markets with one amount of capital and satisfy the reporting rules of both markets with one report.

From 1 August 2011, ASX and ASX 24 market participants must comply with ASIC market integrity rules for capital, reporting and margins for these markets. These rules are modelled on the previous requirements in Section 8 of the ASX and ASX 24 Operating Rules, which expired on 31 July 2011. ASIC may review these rules at a later date.

From 1 January 2012:
•    Non-clearing ASX 24 market participants must submit monthly returns to ASIC 10 business days (instead of one month) after the end of each month, consistent with the requirements for non-clearing ASX market participants.
•    All ASX 24 market participants must lodge monthly reconciliation of client money with ASIC, one month after the end of each month, instead of lodging them with the ASX Group within that timeframe.
•    All ASX 24 market participants must complete daily reconciliations of client money, consistent with the existing requirement for ASX market participants.

These rules include maximum penalties for breaches, based on penalties previously applied by the ASX Group under the previous requirements.

ASIC will interpret the market integrity rules for the ASX market taking into account the ASX Group’s Capital Liquidity Handbook and Capital Requirements Guidance.

All pre-existing waivers granted by the ASX Group to market participants automatically transferred across to ASIC on 1 August 2011.

Chi-X market participants must comply with ASIC market integrity rules for capital and reporting for the Chi-X market. The rules are modelled on the ASIC market integrity rules for capital and reporting for the ASX market. ASIC have not included rules for margins, as they relate to futures, which the Chi-X market is not authorised to trade.

Participants who are market participants on both the ASX market and the Chi-X market will only need to have one amount of capital and may satisfy the Chi-X reporting rules by reporting under the ASX rules.

A market participant can contact ASIC by email or phone on matters relating to the market integrity rules for capital, reporting, margins and related requirements.

Enrol Now

Student Info – AAMC Training Policies

Do you qualify for Credit Transfer /RPL

Contacts

  • Unit 5, 17 Foley Street
    Balcatta WA 6021

    Phone: + 61 8 9344 4088
    Fax: + 61 8 9344 4188
    Email: info@aamctraining.edu.au

System Requirements

  • What computer and software will be needed?
    • Windows XP or Linux based computer with internet connection.
    •  Internet Explorer 8.0 and above OR Mozilla Firefox
    •  Quick Time Player 4 and above
    •  Acrobat reader 6 and above
    •  Adobe Flash Player
    Download speeds
    •  Min 2 Mbps or above speed is required for running video